Saudi Arabia Tobacco Product Market Research Report, 2028

The Saudi Arabian tobacco products industry is at a crossroads between tradition and change, reflecting the cultural relevance of tobacco as well as the impact of changing global trends. Saudi Arabia has a thriving economy fueled by its massive petroleum reserves, and its people enjoy a reasonably high standard of living. This economic prosperity translates into significant discretionary income for many users, allowing them to indulge in luxury and imported tobacco products. This component provides a solid platform for market expansion, particularly for premium cigarettes and luxury tobacco brands. Tobacco use has deep cultural origins in Saudi Arabia, with activities such as shisha (water pipe) smoking playing an important role in social gatherings. The societal acceptance of tobacco, particularly among men, contributes greatly to the sustained demand for tobacco goods. Smoking is considered a social pastime and a mark of hospitality in Saudi Arabia, making it an essential component of the culture. Saudi Arabia's population is youthful and increasing. With many young adults joining the labor force and earning disposable income, this generation contributes significantly to the cigarette business. The allure of sampling new tobacco products, especially cigarettes, is great among young people, fueling industry expansion, owing to its cultural and historical significance, Saudi Arabia is experiencing an increase in tourism. The influx of tourists, including religious pilgrims visiting holy sites, has led to increased sales of tobacco products at duty-free shops, airports, and retail centers. Tourists often purchase tobacco items as souvenirs or for consumption during their stay. According to the research report "Saudi Arabia Tobacco Product Market Overview, 2028," published by Actual Research, the Saudi Arabia Tobacco Product market is projected to reach market size of more than USD 4 Billion by 2028. Saudi Arabia is a major religious tourism destination, with millions of pilgrims visiting the holy sites of Mecca and Medina each year. These travelers frequently buy tobacco goods at duty-free shops in airports and major cities, which help the market, flourish. Duty-free shops offer a tax-free atmosphere in which travelers can purchase tobacco products at cheap costs. Luxury and premium tobacco brands are popular in the Saudi market. Premium cigarettes, cigars, and special tobacco products appeal to people who value high-quality and distinguished tobacco experiences. The presence of these brands in the Saudi market leads to the expansion of the premium sector. Saudi Arabia has a domestic tobacco production business that comprises tobacco farming and the manufacture of various tobacco products. This local industry adds to market dynamics by supplying locally supplied tobacco as well as a variety of locally made items. It promotes jobs and helps the country's economy. The country has a diversified expatriate population from all over the world. These expat populations frequently bring their cigarette smoking habits and preferences with them. Expats enrich the market by introducing a diverse range of tobacco products and cultural traditions. Alternative goods such as e-cigarettes and heated tobacco devices are becoming popular in Saudi Arabia. These alternatives provide users with potentially lower-risk alternatives to traditional tobacco products, increasing their interest and contributing to market diversification.

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In terms of product market include cigarette, smokeless tobacco, cigars and cigarillos, next generation products and kretek. Cigars and cigarillos are in significant demand in Saudi Arabia tobacco product market. Cigars and cigarillos are frequently connected with wealth and status. These products are seen as symbols of sophistication and refinement, appealing to customers looking for a more refined tobacco experience. The act of smoking a cigar is frequently associated with important occasions and celebrations, lending a feeling of grandeur to such gatherings. In Saudi Arabia, smoking cigars and cigarillos has cultural importance. These products are traditionally consumed at social gatherings, business meetings, and festivities, demonstrating the country's rich cultural past. Cigar smoking is regarded as a gracious gesture and frequently represents significant social contact. In Saudi society, smoking cigars and cigarillos is widely regarded as a status symbol. Smoking premium cigars or cigarillos can convey a sense of wealth and distinction. It's not just about the tobacco; it's about the image and impact it leaves behind. Cigars and cigarillos come in a variety of flavor profiles, ranging from light and mellow to robust and complex. This selection appeals to those who enjoy the subtle flavors and smells of various tobacco mixes and wrapper varieties. A big draw is the freedom to research and select cigars that match personal preferences. Based on distribution channel market is bifurcated into speciality store, hypermarket/ supermarket, convenience stores, online and others. Online channel is growing significantly in Saudi Arabia tobacco products market and is expected to register highest growth rate during the anticipated time frame. Saudi Arabia is experiencing a spike in e-commerce activity, with an increasing number of consumers shopping online for a variety of products, including cigarettes. The convenience of online shopping, combined with the availability of a diverse choice of tobacco goods, has fueled the online channel's rise. Online purchasing provides a discrete and private shopping experience. Customers who prefer not to purchase tobacco goods in physical stores or in contact with retail workers frequently use online platforms to make their purchases in private. When compared to traditional stores, online sellers frequently carry a larger selection of tobacco items. This selection includes numerous cigarette brands, cigar types, shisha flavors, and specialist accessories. Consumers can research many possibilities and select specific products that meet their needs. Online retailers can reach a broader audience, including remote and underserved areas of Saudi Arabia. This expanded reach has enabled consumers who may have limited access to physical tobacco stores to explore and purchase a wide range of products. Considered in this report: • Geography: Saudi Arabia • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Praveen Kumar

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Aspects covered in this report: • Saudi Arabia Tobacco Product market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product: • Cigarette • Smokeless Tobacco • Cigar and Cigarillos • Next Generation Products • Kretek By Distribution Channel: • Speciality Store • Hypermarket/supermarket • Convenience Stores • Online • Others

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The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Tobacco Product industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.